Property

Question 1

What is the Equitible Right to Redeem

Answer 1

• Gives a junior lienholder the option to pay off the interests of the senior interest holder prior to the foreclosure proceedings to prevent the junior interest holder’s interest in the land from being wiped.
• The amount to be paid is the amount owed on the original debt.

Question 2

What is the Statutory Right of Redemption

Answer 2

• Available in around half of States.
• Gives the mortgagor and sometimes junior lienholders the right to redeem their interest in the property for a fixed period after the foreclosure sale has occurred.
• The amount to be paid is typically the foreclosure sale price.